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LP Acquisition and Lockup
Perpetually creating an ever increasing liquidity pool for more liquid trading and a more stable price floor
The BUSTA revenue distribution not only increases BUST value through token buyback and burn but also through automated liquidity acquisition and lockup.
As BUST tokens are bought and sold through the BUSTA SWAP DEX, the 4% Tx Tax is applied to each transaction. 25% of that Tx Tax is collected via the Automated Tx Tax Manager as the LP tokens that were traded. Meaning if someone uses BUSD to buy $100 worth of BUST, $1 is collected as BUST-BUSD LP tokens (25% of the 4% Tx Tax).
Likewise, as the 2% House Edge is collected in BNB, 25% of it is used to acquire more BUST-BNB LP tokens. Half of the 25% is used to buy BUST from the open market and that BUST is then paired with the other half of the BNB to create the BUST-BNB LP tokens.
All of the BUST-BNB and BUST-BUSD LP tokens from both revenue streams are then added to the liquidity pools for trading. This increases the total liquidity available, meaning less price impact and disparity between buy and sell prices for all BUST trades.
In addition to providing more trading liquidity, this LP Acquisition and Lockup protocol also adds some buy pressure to BUST as the House Edge portion of revenue purchases BUST from the open market with BNB.
Again, this LP Acquisition and Lockup revenue percentage is adjustable via a proposal and vote from the DAO / BUST community, once our governance platform is live in 1-3 months after launch.
Using the example of $1,000,000 of betting volume and $1,000,000 of trading volume per day, the fee manager contracts would receive $40,000 from the Tx Tax (4%) and $20,000 from the House Edge (2%). $15,000 of that (25% of $60,000 collected in total) would be locked up in the liquidity pools in the form of BUST-BNB and BUST-BUSD LP tokens, every day.
Last modified 8mo ago